Don't banks need to have people and businesses take on debt in order to make money? What would happen to the housing industry if everyone had to wait until they had enough cash to buy a house (not necessarily a bad idea, but the adjustment period would be a *****!) One could easily argue that borrowing money is a sign of confidence in the the future by both the borrower and the lender.

I had a neighbor who couldn't control his spending. He owned two businesses (two gas stations), had a nice house on a nice piece of property behind my house. He and his family "lived the life" for a number of years.

Care to guess what happened to his businesses once his debt finally caught up to him? And his house? And his family?

Posted by tecwrg on 3/11/2013 10:31:00 AM (view original):I had a neighbor who couldn't control his spending. He owned two businesses (two gas stations), had a nice house on a nice piece of property behind my house. He and his family "lived the life" for a number of years.

Care to guess what happened to his businesses once his debt finally caught up to him? And his house? And his family?

I'm guessing your neighbor didn't have 100% control over the currency he was borrowing in?